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Renowned crypto analyst REKT CAPITAL has revealed that Bitcoin (BTC) is on the brink of a significant breakout, according to classic technical analysis. The pseudonymous analyst, who boasts a following of 543,000 on the social media platform X, shared insights indicating that BTC is in the process of confirming a breakout after closing above a downward resistance line.
REKT CAPITAL stated, “Bitcoin is on the cusp of a breakout. Mere hours away from performing the initial but crucial steps towards fully confirming a breakout beyond the multi-month Downtrend. And when BTC breaks a technical downtrend, BTC enters a new technical uptrend.“
Zooming out to the weekly chart, REKT CAPITAL emphasized that BTC must surpass a critical exponential moving average (EMA) to strengthen its potential for a sustained rally. “Bitcoin is slowly approaching the 21-week EMA resistance (green). Price will need a Weekly Close above ~$86,900 Sunday/Monday midnight UTC to position itself for a breakout from the triangular pattern formed by these two Bull Market EMAs,” he noted.
At the time of writing, Bitcoin is trading at $84,463.
Turning to Ethereum (ETH), the second-largest digital asset by market capitalization, REKT CAPITAL highlighted that ETH needs to maintain its current price range to trigger a rally reminiscent of its 2023 performance. “After losing its black-black Macro Range ($2,196-$3,900), Ethereum dropped right into the historical demand area below (light blue). Since then, Ethereum upside wicked into the top of the light blue box, turning the top of the box into new resistance, like in 2023 (red circle). More, ETH recently downside wicked below this box, potentially holding the bottom of the box as support. ETH needs to hold the bottom of the light blue historical demand area if it wants to position itself for a repeat of mid-2023 history (green circle),” he explained.
At the time of writing, Ethereum is trading at $1,595.
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